Questerre Energy Corporation

Questerre Energy Corporation

March 29, 2005 09:15 ET

Questerre Acquires Assets In Alberta; Announces Financing Agreement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: QUESTERRE ENERGY CORPORATION

TSX SYMBOL: QEC

MARCH 29, 2005 - 09:15 ET

Questerre Acquires Assets In Alberta; Announces
Financing Agreement

CALGARY, ALBERTA--(CCNMatthews - March 29, 2005) - Questerre Energy
Corporation (TSX:QEC) ("Questerre" or the "Company") reported today that
it has acquired producing assets in the Hector and Westlock areas of
Alberta.

Based on an independent reservoir engineering report, these assets have
been assigned proven plus probable reserves of 89,700 barrels of oil
equivalent ("boe") with deliverability of 116 boe per day. Current
production from these properties is approximately 75 boe per day.

The assets include 13 gross sections of land (3.8 net). Questerre has
identified three drillable prospects on these lands. As part of the
acquisition, Questerre agreed to participate in the drilling of one of
these prospects on a pay 30% to earn 30% basis. The drilling of this
well in now complete and the well is currently being cased for
production testing.

The assets will be acquired from Rupert's Crossing, an investment
corporation ("Rupert's) for a purchase price of $2 million, subject to
the completion of an equity financing by Questerre. Rupert's is a
private investment holding company controlled by Michael Binnion,
President and Chief Executive Officer.

The transaction was approved by an independent committee of the Board
formed for the purposes of evaluating this acquisition. This acquisition
is deemed a related party transaction as defined by OSC Rule 61-501. It
is exempt from the valuation and minority approval requirements of OSC
Rule 61-501 pursuant to the exemptions contained in sections 5.5(2) and
5.7(2) of Rule 61-501 in that the value of the transaction is less than
25% of the market capitalization of the Company. The transaction is
subject to receipt of all requisite regulatory approvals and the
completion of an equity financing by Questerre.

Questerre also announced that it has retained DnB NOR Markets as its
financial advisor in connection with an application to list the
Company's common shares on the Oslo Stock Exchange. DnB NOR Markets has
also agreed, on a best efforts basis, to raise equity finance for the
acquisition in the Hector and Westlock areas and new project acquisition
and development.

DnB NOR Bank ASA is the largest bank in Norway. DnB NOR Markets is one
of the largest brokerage firms in Norway wholly owned by DnB NOR Bank.

Questerre Energy Corporation is a Calgary-based independent resource
company actively engaged in the exploration for and development,
production and acquisition of large-scale exploration and development
projects in Canada.

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